When it comes to investing in the future, there’s few things more important than saving for your child’s education. But did you know that Sydney is the most expensive city for a private education in Australia? So it’s important for all of us on the North Shore (and beyond) to plan how we can fund our child’s schooling.
Trying to work out cost of a child’s education can be difficult. Of course, we all know there are school fees to be managed, but on top of those there’s the costs so many of us forget to budget for- variables like transport, uniforms, computers, school excursions and sporting trips. Not only are there lots of factors to account for, but (according to the annual ASG parent survey), the costs are rising each year. So it’s more important that ever to make sure you’re planning ahead to manage education costs. Financing these things is one of the most critical investments that parents, families and communities can make.
The cost of education
According to the ASG Planning for Education Index, for children born in 2017, the estimated costs and forecasts for education are:
- A private education in Sydney is $575,140 (18% above national metropolitan average of $487,093)
- A systemic education across metropolitan Australia is $239,672, (up by 57% in the past decade)
- A government education is $68,613 (has climbed 25% in the past decade)
While we’re lucky to have excellent government, systemic and private schools to choose from in Australia, costs can spiral out of control, according to ASG CEO John Velegrinis.
“Our research predicts the cost of education will increase, irrespective of whether you send your child to a government, systemic or private school,” he says.
“If you have three children, the cost of educating them in Sydney’s private education system could top $1.7 million. That’s significantly more than the purchase price of the average family home.”
For this reason, it’s wise for parents to take a disciplined approach to saving by putting a little bit away each week so they financially can afford to meet their children’s educational goals and aspirations in the future.
So how can parents start saving?
Selecting the right option to save for education can make a big difference in helping you reach your goals, without plunging further into debt. If you want to take a proactive approach to saving for education, you may consider an education savings plan.
Why? Education savings plans offer a purpose-built fund dedicated to saving for education, allowing for regular or ad-hoc contributions, and have been granted specific beneficial tax treatment under Australian taxation law.
As Australia’s largest provider of education savings plans, ASG is recognised as the specialist in education funds. ASG’s versatile funds are suitable for everyone from the disciplined saver to those requiring a more structured approach to planning ahead.
ASG education funds can be used to save towards a variety of education goals, such as basic education costs, private schooling and post-secondary education.
This information is brought to you by ASG. With more than 40 years’ experience, ASG has supported over 530,000 children and returned more than $2.5 billion payments to members and their families. To discover the smart way to save for education, contact ASG on 131 ASG (131 274) or visit ASG.
Please read the Product Disclosure Statement (PDS) to consider which education fund product is right for you, available here or call 131 ASG (131 274).
The figures quoted are the average estimated costs and represent the highest amount parents and families could expect to pay.